RTTNews - Bay Street stocks rose for the sixth consecutive session Monday and finished at their highest level in more than a month. Resource stocks led the gainers on Bay Street, which received a boost from higher markets in the U.S. and Europe.
The S&P/TSX Composite Index rallied 171.29 or 1.65% to finish at 10,540.71. This is the best close since June 12.
The Bank of Canada's interest rate decision is due at 8:30 a.m. ET. Rates are widely expected to remain at 0.25%.
Mining stocks finished up 4.9% as First Quantum (FM.TO) soared 11.24%, Inmet (INM.TO) added 4.6% and HudBay (HBM.TO) rose 4.55%.
Gold stocks added 2.5% and materials stocks gained 2.3%. Agnico-Eagles (AEM.TO) added 3.25%, Eldorado (ELD.TO) rose 2.6% and Goldcorp (G.TO) climbed 2.4%.
Energy stocks climbed 2.4% as oil prices gained for a fourth straight session on the NYMEX. Suncor (SU.TO) added 3.7%, Canadian Natural Resources (CNQ.TO) gained 3.5% and Encana (ECA.TO) rose 2.9%.
On corporate news, Canadian Hydro Developers (KHD.TO) has surged nearly 34.2% as TransAlta (TA.TO) announced that it intends to make an all-cash offer to acquire the Calgary-based company at a price of C$4.55 per share. The proposed transaction has an enterprise value of approximately C$1.5 billion. TransAlta stocks dropped 1%.
Labopharm (DDS.TO) dropped 10.1% after the company's new anti-depressant drug was not approved by the FDA because of problems at a supplier's factory, according to The Canadian Press.
National Fuel Gas announced that it has purchased Ivanhoe Energy's (IE.TO) oil and gas operations for about US$40 million. Ivanhoe shares finished up 3.4%.
Hillsborough Resources Limited (HLB.TO) soared 41.3% after the coal mining company announced it has entered into a revised agreement with Vitol Group whereby Vitol would pay US$3.03 million in cash , including net debt.
Paramount Gold and Silver Corp. (PZG.TO) and Klondex Mines Ltd. (KDX.TO) announced a merger deal in a transaction valued at approximately C$80 million. Paramount shares fell 3.75%, while Klondex stock soared 12.1%.
In economic news, Statistics Canada said wholesale sales in current dollars fell 0.3% to $40.1 billion in May, following a revised drop of 0.7% in April. In volume terms, wholesale sales were unchanged in May. Economists were looking for a drop of 2.5% from a month earlier.
Earnings will be in focus tomorrow with several companies expected to report results, including West Fraser Timber (WFT.TO) and Toromont Industries (TIH.TO).
After the market close, Canadian National Railway (CNR.TO) reported second-quarter net income of C$361 million or C$0.76 per share, compared to net income of C$436 million or C$0.90 per share in the comparable quarter last year. Before the announcement, the stock closed the session up 1.24% for the day.
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